Used Ferrari Market: Hot or Cold?

Is the Pre-owned Ferrari market hot or cold? How do we tell? What are the driving factors that make this market hot or cold? These are all questions that we are constantly asked and sometimes they can be very challenging to answer.

Is the Pre-owned Ferrari market hot or cold? How do we tell? What are the driving factors that make this market hot or cold? These are all questions that we are constantly asked and sometimes they can be very challenging to answer.

On February 7, 2018, a 1989 Ferrari Mondial T with 9,000 miles sold on the website, Bring a Trailer, for $66,000. This is more than 50% higher than the Ferrari Market Newsletter says these cars are worth today. On February 8, 2018, a 1987 Ferrari 328 GTS with only 5,000 miles sold on the same auction site for $130,000. And on February 21, 2018, a 1986 Ferrari 328 GTS with 8,000 miles sold for $99,000. All of these examples are selling for significantly higher than the Ferrari Market Newsletter indicates the cars are worth. Does that mean that the used Ferrari market is hot again? Maybe, but then again, on the same Bring a Trailer website, another 1987 Ferrari 328 listed with a high bid of $57,500 failed to sell. This 328 had higher miles (approximately 35,000), but do miles really make that big of a difference? Possibly. Maybe the NYSE has something to do with it? Maybe car collectors get scared to spend big money when the stock market is dropping two thousand points overnight? I believe the answer is not so simple.

Yes, I believe stock market volatility, the economy, and exchange rates, all effect Ferrari Values to some degree. I will, however say, this is probably the least important factor in determining the used Ferrari Market. Most Ferrari owners have a net worth at such a level that they are not affected by Market Volatility. This is also why some cars can cost $130,000 and a similar car, sell at the same auction for $99,000. I have found that every Ferrari stands on its own two feet, and given the financial wherewithal of the average Ferrari Buyer, if they find the right car, they will pay whatever they have to in order to get what they want.

Similarly, when the market gets soft, many collectors will not sell their cars, and prefer to wait for the market to turn. Very few people who own Ferraris get caught in financial binds, therefore very few are sold in distressed situations. This ensures the values stay strong.

How important is service and pedigree? This is the most important piece to any Ferrari, and frankly, the right car, with the right pedigree, will always bring absolute top dollar. Having a car with meticulous service records, only performed by well known technicians, will out weigh the market, the economy, the Stock Market, etc.

So, is it simply an impossible question to answer? Are Ferraris worth whatever someone will pay, and since that is impossible to know at any given moment, you cannot say if the market is hot or cold? All we will say is there are far more millionaires and billionaires in this world than there are Ferraris. As long as top collectible Ferrari values are fetching 7, 8 and 9 figures, our advice is to invest in any Ferrari that you can and don’t worry if the market is hot or cold.

Ferrari Service: Timing Belts Service Intervals

Why are Ferrari timing belt services required so frequently as compared to other makes? We attempt to tackle the ever so common timing belt discussion.

A little over a year ago we wrote an article (Ferrari Timing Belts: Servicing Your Exotic)  about timing belts, what they are, when you should do them, etc… and since then, we have had a lot of response.  And to date, timing belts are still one of the top topics discussed with our clients, especially first-time Ferrari buyers, and we thought it made sense to take a deeper dive discussing them on used Ferraris.  More specically, we are going to look at the timing belt servicing intervals.

lt is quite interesting, whenever we have someone purchasing a pre-owned Ferrari, the timing belt service is almost always brought up in the first few minutes of conversation. Some of the stories and fears we hear that make up the “timing belt service nightmare” can really be quite scary and so we thought it might be helpful to give our perspective.  First and foremost, lots of cars have timing belts, not just Ferraris. This often comes as a surprise to most, but there are actually a lot of Japanese cars with timing belts in them.  It is quite likely that you don’t hear about timing belts in these other cars because the differences in these services are quite substantial, especially cost-wise, so there isn’t as big of a concern.

One of the biggest differences between the services is the intervals of when they need to be performed.  The Japanese cars need to have their timing belt service around every 100,000 miles or 10 years while Ferraris require their service every 30,000 miles or 5 years, at a minimum.  Why the difference?  Simply said, a lot has to do with the actual purpose of the car.  Many Ferraris are not daily drivers, as often Hondas and Toyotas are, and this alone affects the vehicles engine.  It is good for cars to be driven on a regular basis and have their engine and parts exercised;  this helps to prevent things such as minor oil leaks from suddenly occuring.  A minor oil leak can be a bigger issue in a Ferrari because of the location of the of leaks in relation to the timing belt. The other consideration for the interval difference is the way in which the car is driven.  With 0-100 mph in 4 seconds a feature on a Ferrari, we think these cars may be driven slightly differently than a Honda.  The extra power of the engine and higher rpms can cause the wear and tear to occur quicker also affecting the servicing time span.

While this is only one aspect of timing belts, we look forward to addressing more regarding timing belts and other service topics that are front of mind with our clients.

Pre-Owned Ferraris Influenced By Movies and Television

Movies and television series can influence a brand in many ways. When looking at cars specifically, media doesn’t just create iconic makes and models, but it can also increase the value of the actual vehicle. We examine how some Ferraris have increased in value decades later as a result of television and movies.

Super bowl ads, Nike’s “Just Do It” slogan… every year millions are spent creating marketing campaigns to positively shape and market brands.  While Ferrari was already a massive, powerful brand in the 1980’s, it is quite interesting to see how television influenced the brand during this era.  Miami Vice and Magnum PI, two hugely successful shows featured two Ferraris that today remain iconic Ferrari models.  When someone sees a Ferrari 308 GTS, there is a good chance they will reference Tom Selleck in Magnum PI.  Rumor has it, Porsche was actually asked first to make a car for the show, however Ferrari ended up being the lucky manufacturer.  Lucky not just because of the brands visibility, but also because of the effect the show had on sales.  How many Ferraris would you guess were sold as a result of the television show Magnum PI? Our bet, plenty.  If you look at today’s sales and prices of used Ferraris 308’s on the market, it confirms that there is a high following and value for this model.  There is no doubt the value of a pre-owned Ferrari 308 GTS is a result of the television series success.

Lets also not forget about Don Johnson donning his white suit in Miami Vice while driving his Ferrari Testarossa and keeping the streets of Miami safe.  Again, this show made Testarossas a household brand in the 80’s, having a huge impact on their sales.  It is quite amazing to see how these shows impacted, not just immediate sales in the 80’s, but sales today in the pre-owned Ferrari market.  The 1961 Ferrari 250 GT California, from Ferris Bueller’s Day Off, is one of the best examples of how movies and television can impact Ferraris.  This Ferrari model is one of the most expensive and collectible used Ferraris know to man.  Interestingly enough, the actual car in the movie was not a real Ferrari. In fact, the company that made the Ferrari replica for the movie studio received cease and desist letters by Ferrari to stop using their brand, that is, until Ferrari realized the positive effect it was having on sales.  At least, that is the story that was told at the Monterey, CA auction where one of the three actual cars used in Ferris Bueller's Day was recently sold. When a brand is lucky enough to land in a movie or t.v. series that becomes successful, it is remarkable to see the positive influence the brand will receive in the current day and for years and decades to come.